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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

ý

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

 

 

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2004

 

OR

o

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

 

 

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______to _____

 

Commission file number 000-21640

STATION CASINOS, INC.

(Exact name of registrant as specified in its charter)

Nevada

 

88-0136443

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

2411 West Sahara Avenue, Las Vegas, Nevada 

(Address of principal executive offices)

 

89102

(Zip Code)

 

 (702) 367-2411

Registrant’s telephone number, including area code

 

N/A

                (Former name, former address and former fiscal year, if changed since last report)

 

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý No  o

 

Indicate by check mark whether the registrant is an accelerated filer.  Yes ý No o

 

        Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

 

Outstanding at October 29, 2004

Common stock, $0.01 par value

 

66,057,220

 


 


STATION CASINOS, INC.

INDEX

 

Part I.

Financial Information

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Condensed Consolidated Balance Sheets -September 30, 2004 (unaudited) and December 31, 2003

 

 

 

 

 

Condensed Consolidated Statements of Operations (unaudited) - Three and nine months ended September 30, 2004 and 2003

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows (unaudited) - Nine months ended September 30, 2004 and 2003

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

 

 

 

 

Item 4.

Disclosure Controls and Procedures

 

 

 

 

Part II.

Other Information

 

 

 

 

Item 1.

Legal Proceedings

 

 

 

 

Item 2.

Changes in Securities and Use of Proceeds

 

 

 

 

Item 3.

Defaults Upon Senior Securities

 

 

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

 

 

 

 

Item 5.

Other Information

 

 

 

 

Item 6.

Exhibits

 

 

 

 

Signature

 

 

 

 

2


 


PART I - FINANCIAL INFORMATION

 

Item 1.  Financial Statements

 

STATION CASINOS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

September 30,

 

December 31,

 

 

 

2004

 

2003

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

53,831

 

$

62,272

 

Receivables, net

 

18,234

 

28,224

 

Inventories

 

4,903

 

5,110

 

Prepaid gaming tax

 

16,898

 

14,940

 

Prepaid expenses

 

8,213

 

7,114

 

Deferred income tax

 

 

16,804

 

Total current assets

 

102,079

 

134,464

 

 

 

 

 

 

 

Property and equipment, net

 

1,284,651

 

1,158,299

 

Goodwill and other intangibles, net

 

156,070

 

148,717

 

Land held for development

 

131,751

 

119,197

 

Investments in joint ventures

 

99,772

 

86,425

 

Other assets, net

 

119,022

 

98,870

 

Total assets

 

$

1,893,345

 

$

1,745,972

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

23

 

$

22

 

Accounts payable

 

8,335

 

20,438

 

Construction contracts payable

 

20,725

 

 

Accrued expenses and other current liabilities

 

102,734

 

121,856

 

Total current liabilities

 

131,817

 

142,316

 

 

 

 

 

 

 

Long-term debt, less current portion

 

1,287,759

 

1,168,935

 

Deferred income tax, net

 

21,860

 

65,285

 

Other long-term liabilities, net

 

35,189

 

29,497

 

Total liabilities

 

1,476,625

 

1,406,033

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, par value $0.01; authorized 135,000,000 shares; 75,639,442 and 70,912,227 shares issued

 

544

 

497

 

Treasury stock, 10,157,135 and 10,121,677 shares, at cost

 

(136,154

)

(134,534

)

Additional paid-in capital

 

517,966

 

387,973

 

Deferred compensation - restricted stock

 

(76,865

)

(27,003

)

Accumulated other comprehensive loss

 

(1,110

)

(1,334

)

Retained earnings

 

112,339

 

114,340

 

Total stockholders’ equity

 

416,720

 

339,939

 

Total liabilities and stockholders’ equity

 

$

1,893,345

 

$

1,745,972

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3


 


STATION CASINOS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2004

 

2003

 

2004

 

2003

 

Operating revenues:

 

 

 

 

 

 

 

 

 

Casino